Will crypto market will be affected again like what happened during Luna sell off?
This will be FUD or bad news among cryto speculators, so the correlation will have an impact on crypto prices for a while. However traders will sell to avoid losses, this will have little impact in the short term.
I don't really know if this is the most likely reason for the rivalry between the two exchanges, but of course since binance liquidated FTT the trading volume of FTT has dropped.